Investing.com - Asian stocks are broadly lower to start the week on escalating fears that China will again resort to tighter monetary policy to curb soaring property values.
In Asian trading Monday, Japan’s Nikkei 225 rose 0.61% even as USD/JPY fell. The yen gained steam after he Bank of Japan said that Japan’s Monetary Base climbed to 15% in February from 10.9% in January. Analysts expected a February increase of 11.5%.
Hong Kong’s Hang Seng slid 1.3% while the Shanghai Composite plunged 2.86% on the tighter monetary policy fears. Chinese stocks slumped last Friday after policymakers there said higher down payments could be raised and higher loan rates could be required of buyers of second homes.
The news is weighing bank stocks and shares of property development firms, though some traders view the chances of monetary tightening in the world’s second-largest economy as slight due to last week’s weak PMI report that shows China’s economic rebound may not be as rapid as some are hoping for.
Australia’s S&P/ASX 200 Index dipped 1.2% after data on Australian building approvals showed that construction in the Australian economy might be declining. On month-over-month basis, Australian building approvals dropped 2.4% -- much worse than the gain of 2.8% that was anticipated.
With building permits down in Australia, the construction sector of the Australian economy may be weakening. If the Australian economy as a whole is showing signs of distress, Australia’s dollar should weaken.
That report also helped drag New Zealand’s NZSE 50 lower by 1.46%. South Korea’s Kospi fell 0.32% despite a report that showed the country’s manufacturing activity expanded at its most brisk pace in nine months in February.
Singapore’s Straits Times Index fell 0.56% while S&P 500 futures are off 0.39% at this writing. The benchmark U.S. index gained 0.2% last week.
In Asian trading Monday, Japan’s Nikkei 225 rose 0.61% even as USD/JPY fell. The yen gained steam after he Bank of Japan said that Japan’s Monetary Base climbed to 15% in February from 10.9% in January. Analysts expected a February increase of 11.5%.
Hong Kong’s Hang Seng slid 1.3% while the Shanghai Composite plunged 2.86% on the tighter monetary policy fears. Chinese stocks slumped last Friday after policymakers there said higher down payments could be raised and higher loan rates could be required of buyers of second homes.
The news is weighing bank stocks and shares of property development firms, though some traders view the chances of monetary tightening in the world’s second-largest economy as slight due to last week’s weak PMI report that shows China’s economic rebound may not be as rapid as some are hoping for.
Australia’s S&P/ASX 200 Index dipped 1.2% after data on Australian building approvals showed that construction in the Australian economy might be declining. On month-over-month basis, Australian building approvals dropped 2.4% -- much worse than the gain of 2.8% that was anticipated.
With building permits down in Australia, the construction sector of the Australian economy may be weakening. If the Australian economy as a whole is showing signs of distress, Australia’s dollar should weaken.
That report also helped drag New Zealand’s NZSE 50 lower by 1.46%. South Korea’s Kospi fell 0.32% despite a report that showed the country’s manufacturing activity expanded at its most brisk pace in nine months in February.
Singapore’s Straits Times Index fell 0.56% while S&P 500 futures are off 0.39% at this writing. The benchmark U.S. index gained 0.2% last week.